Targeting Attrition: Some Familiar Ratemaking Tools
Wayne P. Olson and
Kurt G. Strunk
The Electricity Journal, 2011, vol. 24, issue 7, 10-22
Because of their investment in long-lived assets with little value in alternative uses, special attention to meeting the terms of the regulatory compact is appropriate. This need not always take the form of full-blown rate casesâthere are more targeted tools as well. Targeted and formula-based approaches can play a role in setting just and reasonable rates, based on prudently incurred costs.
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